Examples of HRA Plan Designs

HRA plan designs are virtually limitless, below are examples of frequently used plan designs. These examples are based on pairing an HRA with a High Deductible Health Plan that has a $2,000 deductible with 100% coinsurance.

Design 1– Employer Pays First

Employer reimburses first $1,000 from HRA

Employee pays the next $1,000

Health plan pays remaining covered benefits

Benefits: Provides first-dollar coverage for employees. Can help assure a smooth transition to a high deductible plan.

Design 2– Employee Pays First

Employee pays first $1,000 of deductible

Employer reimburses next $1,000 from HRA

Health plan pays remaining covered benefits

Benefits: Employer saves the most money. Encourages informed and responsible use of health care services.

Design 3– Split Deductible

Employer and employee split all to the deductible costs

Health plan pays remaining covered benefits

Benefit: Offers a “middle ground” plan in which expenses are shared from the outset.

Design 4– Divided Deductible

Employee pays first $500 of deductible

Employer reimburses next $1,000 from HRA

Employee pays next $500 of deductible

Health plan pays remaining covered benefits

Benefit: Employee deductible is divided in two. The initial employee portion can mirror the group’s current plan deductible.

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